The fluctuation of lithium prices leads to the reform of the pricing mechanism for the world's largest lithium mine!

The fluctuation of lithium prices leads to the reform of the pricing mechanism for the world's largest lithium mine!

On January 29th, IGO announced an adjustment to the long-term underwriting pricing model of Greenbushes, the world's largest lithium mine jointly owned by the company with Tianqi and Yabao. The new settlement method will use the average lithium salt price (M-1) of the previous month of shipment as the benchmark. Previously, this benchmark was the average price of lithium salts from the previous quarter. The announcement also pointed out that due to the lower than expected pick-up volume of Tianqi and Yabao in the first half of this year, mining production will experience a slight decline during this period. The impact of this change on the global lithium market remains to be observed.

IGO Greenbushes Lithium Refinery

It is understood that since the second half of 2022, lithium prices have sharply declined from a historical high of 600000 yuan/ton, and as of January 19, 2024, they have dropped to 98000 yuan/ton.

Although the sharp drop in lithium prices has put enormous pressure on investors, it is a good opportunity for companies to purchase at a low price. They can take this opportunity to expand production scale, increase market share, and lay a solid foundation for future development.

For consumers, the decline in lithium prices also means they will be able to enjoy cheaper new energy vehicles and energy storage devices. This will undoubtedly further promote the development of electric vehicles and renewable energy, helping to achieve the goal of carbon neutrality.